Can Crave Cookies collect payments from franchisees on behalf of vendors?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
Crave Cookies Franchising may negotiate prices and terms with vendors on behalf of the System. Crave Cookies Franchising may receive rebates, payments or other consideration from vendors in connection with purchases by franchisees. Crave Cookies Franchising has the right (but not the obligation) to collect payments from Franchisee on behalf of a vendor and remit the payments to the vendor and to impose a reasonable markup or charge for administering the payment program. Crave Cookies Franchising may implement a centralized purchasing system. Crave Cookies Franchising may establish a purchasing cooperative and require Franchisee to join and participate in the purchasing cooperative on such terms and conditions as Crave Cookies Franchising may determine.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, Crave Cookies Franchising has the right, but not the obligation, to collect payments from franchisees on behalf of a vendor. Crave Cookies can then remit those payments to the vendor. Furthermore, Crave Cookies Franchising can impose a reasonable markup or charge for administering this payment program. This gives Crave Cookies Franchising the option to streamline payments to vendors and potentially generate additional revenue through markups or administrative charges.
This arrangement could benefit franchisees by simplifying their payment processes, as they would only need to make one payment to Crave Cookies Franchising instead of multiple payments to different vendors. However, franchisees should be aware of any potential markups or charges associated with this payment program, as these could increase their overall costs. It is important for prospective franchisees to understand the terms and conditions of this payment program, including any markups or charges, before entering into a franchise agreement with Crave Cookies.
Crave Cookies Franchising may also implement a centralized purchasing system or establish a purchasing cooperative, requiring franchisees to join and participate under terms and conditions determined by Crave Cookies Franchising. This further emphasizes Crave Cookies' control over the purchasing process and vendor relationships within the franchise system. Franchisees are obligated to acquire all required inputs according to Crave Cookies' System Standards, potentially from designated or approved vendors.